Vietnam's garment exports to the EU have witnessed a sharp 25 to 30 percent decline since January 2012, according to the Vietnam Textile and Apparel Association (VITAS).
VITAS said consumers in Europe are spending less owing to the debt crisis, which has led to a significant decline in Vietnam's apparel exports to European nations.
VITAS also attributed the fall in clothing item exports to EU to Vietnam losing the Most Favoured Nation (MFN) status with the EU. 'Made-in-Vietnam' garments now attract 10 percent import duty and hence EU importers prefer to source their apparel requirements from other Asian countries like Bangladesh, Cambodia and Laos to avoid paying the duty, VITAS said.
Vietnam's small and medium enterprises are still falling short of meeting corporate social responsibility requirements as mandated by EU importers. This might also be a reason for drop in Vietnam's apparel exports to the EU, VITAS added.
Fibre2fashion News Desk - India
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